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Los Angeles DWP suit alleges Colorado firm overbilled for Owens Lake work

Posted by: Aqua Blog Maven on June 25, 2008 at 7:07 am

From the Los Angeles Times:

The Los Angeles Department of Water and Power filed a federal lawsuit Tuesday against a Colorado-based construction and engineering firm, accusing it of overbilling the utility over a seven-year period.

The lawsuit alleged that the Englewood-based company conspired to defraud the DWP by preparing and approving numerous invoices that “artificially inflated the value of the work performed by CH2M Hill and its subcontractors.”

The lawsuit comes one year after an audit commissioned by the DWP concluded that CH2M Hill had overbilled the municipal utility by as much as $4.5 million.

Although the lawsuit does not say how much the city believes it is owed by CH2M Hill, DWP General Manager H. David Nahai said his agency would seek at least $13.5 million, plus punitive damages and $10,000 for each allegedly false claim submitted by the company. “This lawsuit doesn’t specify a number because it’s possible that by the time that other damages are added, the number could be much larger” than the original amount that was overcharged, Nahai said.

CH2M Hill received contracts worth $106 million since 1998 to control dust on the dry bed of Owens Lake, which is about 200 miles northeast of Los Angeles.

A spokesman for CH2M Hill said he had not seen the lawsuit, but denied the allegations of fraud. “We did what we believe, and what others believe, was good work for the city,” said Martin Nicholson, CH2M Hill’s regional manager for the Southwest region. “We stand behind that work.”

Read the rest of this story from the Los Angeles Times by clicking here.

June 25, 2008 · Filed Under LA DWP, Owens Valley & Mono Lake

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